| Author | Message | ||
| Jason (Arnaget)
Junior Member Username: Arnaget Post Number: 69 Registered: 3-2003 |
Thanks John and everyone else.. I will retain my permanent address in New Jersey for all the paperwork that I fill out. | ||
| John Li (Pchop)
Junior Member Username: Pchop Post Number: 99 Registered: 6-2002 |
Jason, if you use a New York CITY (that includes Astoria) address as your residency, in addition to your Federal and State taxes, you will also get slapped with a City tax. There's no way around the state tax, but if you use New Jersey as your residency, even if there is a commuter tax, it is generally still less than the city tax. | ||
| TomD (Tifosi)
Advanced Member Username: Tifosi Post Number: 4083 Registered: 9-2001 |
there are certain resident taxes you have to pay in NY, if I am not mistaken, these will be avoided it you file as a nonresident. This is the whole reason for a commuter tax being levied, to stop the out of state residents from getting a free ride | ||
| R Leander (Mastertrust)
New member Username: Mastertrust Post Number: 9 Registered: 9-2002 |
If you are working in New York you are going to have to file a tax return in New York - regardless of what state you list as your residency. Any income sourced in New York will be taxed in NY so setting up a cover story for NJ (or Florida, Texas or Nevada - where there is currently no state personal income tax) only provides help if you have income that is not sourced in NY. Net - for someone whose primary income is employement income in NY, no real tax advantage to try and establish residence in another state. | ||
| Jason (Arnaget)
New member Username: Arnaget Post Number: 48 Registered: 3-2003 |
Actually, I will be staying in New York, as my grandparents have a place in Astoria that I can go to.. I suppose it saves me rent and other various expenses. The question is whether or not to maintain a permanent address in NJ (where my parents are), or change it to NYC.. There's no doubt that living in nyc is much more exciting and fun than NJ for a young person. Nevertheless, sometimes it's great going back to the suburbs just for a good night's rest.. | ||
| Hubert Tsai (Hubert888)
New member Username: Hubert888 Post Number: 6 Registered: 5-2003 |
There is no comparison! NYC is the place to be. You can never compare NJ to NYC. Since you would work in NYC, do you want your life to be tied to some PATH train schedule? It might not annoy you at first, but it will sooner or later. Living in Jersey, you will have to pay the FAIR commuter tax (and I think Bloomberg is going to hike that tax this year too). So you might as well declare residency in NYC. | ||
| Dave White (Dwhite)
New member Username: Dwhite Post Number: 34 Registered: 5-2003 |
Jason - Stay in NYC. It's where the action is and you will probably have to pay more for you commutation each month from Jersey. As a single(if you are) there is no better place to spend some money while you are young. All that aside, I also would say go to NJ or Conn - lots of good folks to meet on those trains. | ||
| TomD (Tifosi)
Advanced Member Username: Tifosi Post Number: 4075 Registered: 9-2001 |
yes, generally effective rates are slightly lower in Nj than NY city, although that could change  filing the extra return is more work but most software (turbo tax, tax cut) handle cross state credits for taxs paid to another jurisdictions quite well. The deferred comp issue is not one you need to worry about now, it only relates to if and when you get your pension or deferred comp (prob 60 or older) you need to then pay taxes to NY since it was earned there, even if you are retired on the beach in mexico of course they have trouble tracking all of this. | ||
| Jason (Arnaget)
New member Username: Arnaget Post Number: 46 Registered: 3-2003 |
Thanks Tom; are the reasons as far as NJ being better only based on the effective tax rate I'll be paying?.. i'm wondering if the procedure of filing the extra return/dealing with deferred comp will require me to have a CPA handle my taxes... i'm not educated enough on tax matters to do the deferred compensation stuff myself. Bruce, I hear Florida is also a nice place to declare residency for tax purposes...nicer cars/water/girls there..! | ||
| TomD (Tifosi)
Advanced Member Username: Tifosi Post Number: 4074 Registered: 9-2001 |
all else being equal (assuming no unfair commuter tax) prob better to be in NJ, only problem is it is one extra return to file every year, plus you tech need to keep track of any deferred comp (pension etc) for the rest of your life and report it to NY when it finally gets paid | ||
| Bruce Wellington (Bws88tr)
Intermediate Member Username: Bws88tr Post Number: 2297 Registered: 4-2002 |
MOVE TO ARKANSAS...BOTH STATES SUCK..TAKE IT FROM ME.. BRUCE | ||
| Jason (Arnaget)
New member Username: Arnaget Post Number: 45 Registered: 3-2003 |
As it so happens, I'm starting a position at a firm in New York (as a fresh college grad), and I'm not sure which state to declare residency in. I have the option of either NJ or NY (new york city, to be exact). Does anyone know which would offer lower income taxes? I know nyc does have a city tax of some sort, so I'm not very keen on that; likewise, I've heard of the notion of a "commuter tax" (for if I declare NJ residency). Hope you can help; many thanks in advance.. |